Traditional Vienna undergoes luxury facelift

By Sim Sim Wissgott / AFP, VIENNA

Tourists pass in front of a store of Austrian jewelry brand ANNA in Kohlmarkt, center of Vienna, Austria, on Aug. 22.

Photo: AFP

Half a dozen new five-star hotels, flagship stores for Louis Vuitton, Prada and Emporio Armani: Vienna is undergoing a luxury facelift that is delighting Arab, Asian and Russian tourists, as well as locals.

Always the epitome of elegance and culture, the Austrian capital was long set on tradition.

Grand hotels like the famous Sacher, Bristol and Imperial dated back to the Austro-Hungarian empire and on the limited luxury shopping mile — the Kohlmarkt — internationally recognizable brand names jostled for space with local businesses.

However, walk through the city center now and sleek window displays boast the latest Miu Miu handbag or Vivienne Westwood fashion. A new bloc called the Golden Quarter houses a three-storey Vuitton shop, as well as Roberto Cavalli and Mulberry, and will soon welcome the first Yves Saint Laurent store in Austria.

Three five-star hotels — including a Ritz Carlton and a Kempinski — have also opened their doors in the last nine months. A Four Seasons, a Park Hyatt and a third top-ranked hotel are to follow by next year.

“There is hardly a brand that isn’t present in Vienna ... there is no reason to go anywhere else anymore for high-end shopping,” said Helmut Schramm, head of the Vienna Economic Chamber’s fashion division.

The growing number of high-spending tourists from Russia, Asia and the Gulf — including Saudi Arabia, the United Arab Emirates and Qatar — certainly contributed to this trend.

“For them, it’s very much about prestige, about brands. So we’re working in that direction,” Vienna Tourist Board director Norbert Kettner said.

Those most often seen toting large Chanel or Gucci shopping bags around the city center are Asian couples or Arab families. Chinese tourists are the second-biggest spenders, dropping an average 623 euros (US$833) per day, just behind Thai visitors, according to Tourist Board figures.

However, locals are also rejoicing in the opportunity to buy the latest designs from Milan or Paris right at home.

“Salespeople in the shops say they have the feeling Austrians were only waiting for the chance to buy colorful fashion,” said Daniela Steurer from Signa Holding, the group behind the Golden Quarter luxury bloc.

With about 77,600 millionaires, according to Liechtenstein-based investment firm Valluga, Austria has plenty of wealthy locals able to splurge.

The timing of this luxury drive may seem odd, so soon after the financial crisis and amid continuing austerity.

If anything, the surprising thing is that a luxury boom did not occur sooner in a city decked out with grand palaces and elegant cafes, where waltzing at a ball is still a popular pastime.

“Vienna was always a bit of a Sleeping Beauty,” said Paul Dutschmann, marketing chief at the recently opened Palais Hansen Kempinski, which boasts the city’s most expensive suite at 15,000 euros per night.

“Vienna really only started growing in the last 10-20 years,” Kettner said, thanks in part to the opening up of the former Soviet bloc and a boom in Asian travel.

Even with the latest offerings, the Austrian capital pales in comparison with other European cities, with just 19 five-star hotels. Prague, a smaller city, has 42 and Barcelona 24.

“For a city of this size ... there is still room [for growth],” he said.